Several Wholesaling questions...

[Corey Demuth]

First, can anyone explain in detail what the arrangement is between the original seller and the wholesaler? Do you tell them you're a wholesaler or do you initially lead them to believe you are interested in buying the property yourself?

Also, what is the agreement you make with them? I understand there is a contract of sorts but can anyone provide details? Does this contract give you exclusive rights to sell the property for a given timeframe (ie the seller can't sell it to someone else and just give you your deposit back, if he finds a better offer?) If so, how long is this period? How much of a deposit do you need to give them, and do you give it directly to the seller or is it in escrow somehow?

How much cash should you have on hand to try wholesaling? I know nothing is free so I just want an accurate idea of what it takes to get started.

Regarding the whole 50% ARV concept, does this mean you need to try to get the seller to sell you the property for half of what it will be worth after someone repairs it? How do you get an accurate estimate of what the ARV will be?

What happens if bad things occur after you have completed your part of the deal? ie say everything goes through, you get your cut and the seller gets paid, your buyer starts work and finds out there was something hidden that needs to be repaired ie plumbing, wiring, etc. Can you get dragged into this? Legally, are you at all responsible?

Lastly, (for now) are there any wholesalers who would like to take on an apprentice?? I'd love a chance to learn the business before I jump in headfirst.